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Putting a Face on Real Estate since 1995™
• Gary Keller's "The One" Book Presentation Event • ABoR Mercedes-Benz Raffle • JB Goodwin REALTORS Annual Company Picnic • and much, much more!
New Luxury Homes
Associates in Progress
by Grand Haven
page 25
page 37 TM
JULY 2013 • VOLUME 18 • ISSUE 3
Referrals can be a win for everyone By Riki Markowitz
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t some point in every REALTOR’s career a client will walk through the door with a special request. In a city like Austin, that could mean a buyer whose primary language is Chinese or one that is wheelchair bound and looking for a property they can retrofit to accommodate ramps or wider doorways. When faced with clients who have special needs, including geographic requests, it’s not unusual for a REALTOR to pull up his or her electronic Rolodex and refer the buyer to an agent that’s more qualified in that area. “Our code of ethics says you need to be an
expert in the area in which you work, live and practice,” says Christy Gessler, team leader at Keller Williams Realty Cedar Park. “Victoria Reviel, CEO and designated broker at 98th Meridian Boutique Real Estate Sales and Marketing Group, agrees, “This is one of the largest purchases of a person’s life. I understand that the agent does not want to lose the commission, but they need to think about what’s best for the client and not what’s best for his or her pocketbook.”
How to make a referral Making referrals actually happens often. “There are people moving here from all over the country—and the world,” says Reviel. What’s best for the client often means handing them over to a colleague in the next cubicle or to another brokerage. For REALTORS at big firms, like Christy Gessler, who has 132 agents at her branch alone, finding a co-worker that is experienced in land and ranch transactions or one who knows American Sign Language, is typically not a challenge. “Probably 80 percent of the time we’re able to do referrals within our office,” she says. David Schneider, sales manager and accredited luxury home specialist at the Austin Goldwasser Real Estate branch, also has plenty of colleagues to turn to for support. “Because we have such a large company, if it’s in the greater Austin area we can take care of it. But if a buyer is interested in an area we don’t service, we will refer that client to someone else.” Goldwasser has a second branch in Georgetown.
Doing your homework Since many firms are not that large, making a referral may require some phone calls and research. “It’s pretty important to have a small circle of colleagues that you can call in a pinch,” says Chris Rodriguez, Women's Council of REALTORS president and agent at Austin REAL Pros, a firm with just six agents. “For you to consider referring someone to me, you’re going to want to know who I am, maybe you’re going to want to talk to a few people who have worked
with me,” he says. To build that circle, Rodriguez stresses the importance of networking. Like colleagues at larger firms, the first place Rodriguez looks when referring a client is at his own office but he also suggests letting the broker decide who would be able to handle the business. While Gessler has the convenience of making in-office referrals, that’s not always a suitable solution, especially when a buyer has his eye on a property that’s out of that brokerage’s territory. So not only does Gessler have relationships with REALTORS all over Austin, but thanks to networking, she also has contacts in different parts of the state, from Fort Worth to Abilene and El Paso. To ensure a good fit, she will interview three to four agents on the phone or in person before even setting up an appointment. “I want to get a feel for the agent’s demeanor. I definitely do some front-end homework. Whenever I make a referral, my reputation is at stake.”
Negotiating a referral fee One reason some agents will do anything to keep a buyer is for fear of losing the commission. But working outside of your area of expertise can be risky, says Rodriguez, who is very familiar with downtown. “It’s really inconvenient if you’re showing clients properties and you don’t know where the one-way streets are, or how to access buildings you’re trying to get into. You’re not going to look like a professional.” On the other hand, if a buyer is looking for a land and ranch deal, Rodriguez would quickly refer the client to a colleague who knows that territory. For this reason, giving the referring agent a percent of the commission is common. Rodriguez notes, “A referral fee is a courtesy. Agents are able to determine the commission structure. There are no set rules and it’s not a guarantee. But it’s something I definitely offer.” In fact, all of the agents Realty Line spoke with offer a referral fee. “There’s no real set
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Upcoming Events Thursday, July 18 Serene Hills REALTOR Grand Opening 17500 Hwy 71 W - 11 a.m. to 2 p.m. HBA Sales & Marketing Council Happy Hour and Million Dollar Club Awards The Range - 6:30 to 8:30 p.m. Tuesday, July 23 HBA Mid-Year Housing Forecast HBA Office - 11:30 a.m. to 1 p.m. Friday, August 2 ABoR Fan Fair Friday FAN DRIVE ABoR Office - 8 a.m. to 5 p.m. NAHREP Austin Filantropia - The Black & White Affair Westin Austin at The Domain 8 a.m. to 5 p.m. Thursday, August 15 HBA Networking Social Ferguson Ent. Showroom - 5 to 7 p.m.
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